03/26/2022
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Some of the biggest misconceptions I hear as a Realtor are related to down payments.
Helping you set the record straight by debunking these myths once and for all.
โ Myth #1: You need a 20% down payment.
โ๏ธReality: Sure itโs ideal if you wanna get off the hook in paying private mortgage insurance also known as PMI. But there are other options, For qualifying buyers, lenders can offer options with 10% or 5% down if youโre willing to pay the monthly PMI cost. ๐
โ Myth #2: If you owe a lot of student loan debt, there is no way you can get a mortgage.
โ๏ธReality: Having a lot of student loan debt doesnโt automatically disqualify you from getting a mortgage. The key factor is not necessarily the size of your loan, but the amount of your total monthly debt payments compared to your monthly income. This is called DTI. ๐งโ๐
โ Myth #3: If your credit score is low, you should not even try to get a mortgage.
โ๏ธ Reality: Millions of potential buyers assume they will not be approved for a mortgage even though many could qualify on the basis of their credit score. Thatโs not always the case.
Itโs best to discuss your current financial situation with an experienced Lender who can help establish a strategy to repair or strengthen your credit score before applying for a loan. The bottom line? Strategy! Explore your home financing options early, and start building a personal team of experts on your side
Housing agencies, real estate agents, and participating lenders can provide a wealth of knowledge to get you one step closer on your path to owning the house of your dreams.๐ ๐
DM me to learn more!
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